Alabama security deposit law (Ala. Code § 35-9A-201) governs how landlords collect, hold, and return tenant deposits. Getting it wrong can cost you double the deposit amount in court. Here’s what every Montgomery landlord needs to know.
Maximum Deposit Amount
Alabama law limits security deposits to one month’s rent. However, this cap does not apply to pet deposits, deposits for tenant modifications, or deposits covering increased liability risks. Many landlords collect the one-month maximum plus a separate pet deposit.
The 60-Day Return Rule
After the tenant vacates and returns possession, you have 60 days to either return the full deposit or provide an itemized written list of deductions. The refund must be mailed via first-class or certified mail to the forwarding address the tenant provides in writing. Missing this deadline means you may owe the tenant double the deposit amount.
Allowable Deductions
You can deduct for unpaid rent and for damage beyond normal wear and tear. Normal aging of carpet, minor scuffs on walls, and faded paint are not deductible. Holes in walls, broken fixtures, missing appliances, and excessive filth are deductible. Document everything with timestamped photos at move-in and move-out.
How James-Hawkins Handles Deposits
We conduct thorough move-in and move-out inspections with photo documentation for every property. Our team handles all deposit accounting, deduction itemization, and legal-compliant refund mailings within the 60-day window. It’s one of many reasons owners trust us to protect their investment.
For tenants: James-Hawkins residents can also move in deposit-free through our partnership with Obligo. Learn more about deposit alternatives.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult an Alabama attorney for specific legal questions.
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